Published: Wed, August 21, 2019

Trump considers new tax cut to boost U.S. economy

Trump considers new tax cut to boost U.S. economy

It's a phrase with a history.

He hinted that the White House would like to see Beijing resolve ongoing protests in Hong Kong first.

The financial markets last week signaled the possibility of a USA recession, adding to concerns over the ongoing trade tensions and word from Britain and Germany that their economies are shrinking. On Monday, President Trump sought to allay recession fears while deflecting blame to Federal Reserve Chairman Jerome Powell.

The economists surveyed by the National Association for Business Economics (NABE), in a report released Monday (Tuesday NZT), mostly didn't share Trump's optimistic outlook for the economy, though they generally saw recession coming later than they did in a survey taken in February. "We are set for a tremendous burst of growth if the Fed did its job, but that is a big if". Consumers are rich. Tax cut loaded up with money.

The survey showed a steep decline in the percentage of economists who found the $1.5 trillion in tax cuts over the next decade "too stimulative" and likely to produce higher budget deficits that should be reduced, to 51% now from 71% in August 2018.

"We're very far from a recession", he said. President Trump also helped pressure prices after he announced a delay in the tariffs until mid-December on several Chinese goods.

"Other countries say THANK YOU to clueless Jay Powell and the Federal Reserve", Trump wrote in a tweet. For Trump, striking that balance may be even more hard than for most.

But the president has not actually made much effort to hide his own economic anxiety or desire for further stimulus. The celebrity businessman was elected in 2016 promising to reduce unemployment - a task at which he has succeeded - and to bring about historic GDP growth, where he has had less success.

There are other reasons as well for the administration's rosy pronouncements, said Tony Fratto, a former Treasury Department spokesman in the Bush administration during the onset of the financial crisis. If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone! "And that's an inherently a hard thing to measure".

The president also blamed the media "would love to see a recession" as his reelection approaches next year. But that hasn't stopped the White House from exploring ways to make the political cost less painful.

He then declared that interest rates, "over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well".

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